Avery Dennison Corp (AVY)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,245,300 | 8,955,200 | 8,343,800 | 6,901,500 | 6,984,600 |
| Property, plant and equipment | US$ in thousands | 1,596,200 | 1,540,200 | 1,477,700 | 1,343,700 | 1,210,700 |
| Fixed asset turnover | 5.17 | 5.81 | 5.65 | 5.14 | 5.77 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $8,245,300K ÷ $1,596,200K
= 5.17
Fixed asset turnover measures how efficiently a company generates sales from its investments in fixed assets. Avery Dennison Corp's fixed asset turnover has fluctuated over the past five years, ranging from 5.14 to 5.81. In 2023, the ratio decreased to 5.17 from 5.81 in 2022. This suggests that the company generated $5.17 in sales for every $1 invested in fixed assets in 2023, a slight decrease from the previous year. While the trend is not consistently increasing, Avery Dennison Corp has generally been able to efficiently utilize its fixed assets to generate sales. It is essential for the company to closely monitor this ratio to ensure optimal utilization of its fixed assets in the future.
Peer comparison
Dec 31, 2023